speed resistance lines

Definition

A tool used in technical analysis to identify areas of support and resistance. The tool consists of three trend lines. One is drawn from the low to the high in an uptrend or from a high to a low in a downtrend. The other two lines are drawn at 1/3 and 2/3 intervals to estimate support or resistance. For example, in a downtrend, the 2/3 line would be drawn from the high point to a point two-thirds of the way down from the high to the low. The 1/3 line would be drawn from the high point to a point one-third of the way down from the high to the low.
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